FREIGHT: Freight rates remain volatile

London (Simpson, Spence & Young) - Following falls in the previous week, the dry bulk market experienced some recovery from the middle of last week, with average earnings for Cape-size vessels have slipping to $29,872/day, before rebounding to $32,552/day.

Transatlantic round voyage earnings have increased from $30.727/day one a week ago to $34,500/day, and fronthaul earnings rose by $3,854/day week-on-week to $51,235/day. In the Pacific market, earnings for transpacific round voyage rose by $1,321/day week-on-week to $27,175/day. In contrast, the Panamax market remained negative over the past week, with average earnings falling from $26,519/day to $25,282/day.

Total dry bulk carrier newbuilding deliveries accelerated in January, hitting a new record of 6.3 Mdwt or 77 vessels. The Cape-size fleet continued to expand at a faster pace than any other sector of the dry bulk fleet, with 19 new Capes delivered in January, compared with the previous high of 17 vessels in September 2009. Increases were also apparent in the Panamax sector, with 15 newbuilding deliveries in January compared with average monthly deliveries of seven vessels in 2009.

Australian iron ore exports (wet basis) in December 2009 reached 36.6 Mt, representing an all-time high, according to the Australian Bureau of Statistics. Annual Australian iron ore exports of 382.98 Mt in 2009 were up by 18.3% on 2008, hitting an all-time high. China accounted for 73% of the total, followed by Japan at 16% and South Korea at 8%.